M A R K E T B E AT Retail 2019

YoY 12-Mo. Chg Forecast 1.67 Market Overview Stock (million sq m) The completions of Lanzhou Dongou World Trade Plaza and Lanzhou Center in 2019 added a combined 383,000 sq m of new retail ¥220.4 supply to the market. The overall stock of retail space rose to approximately 1.67 million sq m by the end of 2019. Rent (PSM/MO) The average asking rent in the retail market was RMB220.4 per sq m per month at the end of 2019, and the overall vacancy rate was at 11.5%. The fashion, cosmetics，F&B and entertainment segments were the most active during the year，and additional new diverse 11.5% brands entered the market. These included Lanzhou Center introducing the local cross-talk club Deyi Brothers, HEYTEA entering Vacancy Rate Wanda Plaza, and Lufthansa Commercial plaza introducing Muyan Bookstore. Source: Cushman & Wakefield Research Outlook

In the next two years the market is expected to welcome more than 869,400 sq m of new supply, of which more than 40% is to be LANZHOU ECONOMIC INDICATORS located in Chengguan . Q2 2019 The opening of the Metro Line One in 2019 has brought new opportunities for the development of the commercial market. The subway YoY 12-Mo. Chg Forecast runs through almost all the existing retail submarkets, and will greatly improve travel convenience. We can expect this to draw greater 5.2% customer flows to retail projects along the metro line and to help accelerate the development of the Lanzhou retail market. GDP Growth 7.0% Total Retail Sales of RENT / VACANCY RATE RETAIL SUPPLY PIPELINE BY SUBMARKET Consumer Goods Growth 600 14% 500 240 11% m) 400 sq 300 1.9% 220 8% 200 CPI Growth (‘000 5% 100

RMBSQM/MO 200 2% 0

19,508 180 -1% Per Capita Disposable 2017 2018 2019 Income of Urban Chengguan District Other Rent Vacancy Rate Residents

Source: Lanzhou Statistics Bureau / Cushman & Wakefield Source: Cushman & Wakefield Research Source: Cushman & Wakefield Research Research M A R K E T B E AT LANZHOU Retail 2019

MARKET STATISTICS

UNDER CNSTR TILL 2021 ASKING RENTAL RANGE SUBMARKET INVENTORY (SQM) VACANT (SQM) VACANCY RATE (SQM) (RMB/SQM/MO)*

Chengguan District 922,000 113,100 12.27% 360,000 200–250

Qilihe District 411,000 38,950 9.48% 80,000 220–270

Anning District 212,820 24,305 11.42% 219,400 180–230

Xigu District 72,000 4,560 6.33% 210,000 140–180

Other 56,000 11,200 20.00% 0 100–150

LANZHOU TOTALS 1,673,820 192,115 11.48% 869,400 220.4

*Data includes shopping malls only *Asking Rental Range (RMB/sq m/mo) is based on ground floor rent in prime locations in major shopping centers, excluding management, promotional and other fees.

SIGNIFICANT STORE OPENINGS 2019 PROPERTY SUBMARKET TENANT SECTOR Sabrina Wei Lufthansa Commercial Plaza Chengguan District Muyan Bookstore Cultural and Creative Senior Associate Director Head of North Research Lanzhou Center Deyi brothers crosstalk Club Entertainment Qilihe District 14/F, North Tower, Beijing Kerry Centre, 1 Guanghua Road, Beijing 100020, China Wanda Plaza Chengguan District HEYTEA Beverage Tel: +86 10 8519 8087 / [email protected] cushmanwakefield.com SIGNIFICANT PROJECTS UNDER CONSTRUCTION PROPERTY SUBMARKET EXPECTED OPENING DATE SQM Hobsca business street Qilihe District 2020 80,000 A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Guangyuan International Center Anning District 2020 69,400 Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for Lanzhou xinyuehui Chengguan District 2020 100,000 real estate occupiers and owners. Cushman & Wakefield is Guofang lehuohui Chengguan District 2020 50,000 among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 Shengda square Anning District 2020 70,000 countries. In 2018, the firm had revenue of $8.2 billion Donghu Plaza Chengguan District 2020 60,000 across core services of property, facilities and project management, leasing, capital markets, valuation and other Jincheng Center Xigu District 2020 80,000 services. Zhonghai Huanyu City Anning District 2021 80,000 ©2020Cushman & Wakefield. All rights reserved. The information Mingcheng square Chengguan District 2021 150,000 contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is Xigu Wanda Plaza Xigu District 2021 130,000 presented without any warranty or representations as to its accuracy.